Tripadvisor stock faces 58% drop in upcoming earnings report

On May 7, 2025, Tripadvisor, a leading travel and restaurant website, is set to unveil its financial results for the fiscal first quarter of the year. Analysts project earnings of 5 cents per share on $388 million in revenue, which highlight a significant decline of 58% in adjusted earnings compared to the previous year’s figures. The earnings last year amounted to 12 cents per share and revenue of $395 million, revealing challenges the company has faced amidst changing market dynamics. This financial report is critical for investors as Tripadvisor stock has historically underperformed after earnings releases, having dropped 70% of the time, with an average decline of 7.7% and a maximum observed fall of 29% following these reports. Furthermore, while Tripadvisor's focus on the Experiences category, including segments like Viator and TheFork, has delivered positive results, the Brand Tripadvisor segment has encountered a downturn, highlighting weaknesses in its traditional business model. The company anticipates continuing momentum in the Viator segment, with expectations of mid to high-teens growth in booking volumes. Meanwhile, TheFork segment is expected to see low double-digit revenue growth, but a slight revenue decline in the low single digits is projected for the Brand Tripadvisor segment. The current market capitalization of Tripadvisor stands at approximately $1.9 billion, with the company achieving $1.8 billion in revenue over the last twelve months and maintaining operational profitability with reported operating income of $92 million and a GAAP net income of $5 million. For event-driven investors, understanding historical trends surrounding earnings reports may provide advantages for strategic positioning around earnings events, whether entering positions beforehand or responding to price movements following the results.